Debenhams has secured 40 million pounds ($51.45 million) in additional funding via some of its lenders as This particular strives to find a longer-term solution to its financial problems, the embattled UK retail chain said on Tuesday.
Once the country’s biggest department store chain, the firm has been struggling with net debts of almost 300 million pounds along with has given a string of profit warnings as This particular failed to keep pace with consumers moving online along with to cheaper outlets.
This particular said the completely new loan, agreed for a period of 12 months, might act as a bridge to “facilitate a broader refinancing along with recapitalisation”, adding This particular was still talking to its stakeholders along with might conclude a “comprehensive refinancing”.
Shares from the company were on course to rise around 10 percent at opening, according to traders in London.
“The support of our lenders for our turnaround plan is actually important to underpin a comprehensive solution which will take account of the interests of all stakeholders, along with deliver a sustainable along with profitable future for Debenhams,” Chief Executive Officer Sergio Bucher said.
The company also said from the same statement This particular had signed an agreement with Hong Kong-listed supply chain solutions firm Li & Fung to develop a strategic sourcing partnership.
The deal might cover a material part of its own-brand sourcing over time along with might improve product quality along with lead-times, helping margins along with costs.
($1 = 0.7774 pounds)